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District must go back to drawing board
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SOUTH WAYNE - Black Hawk voters Tuesday sent a clear message to the school board that exceeding property tax revenue caps isn't an option for the district's financial problems.

"There was a strong statement by the community," Superintendent Charles McNulty said, "and the board will listen to the community."

By a vote of 617 to 350, voters rejected a recurring referendum that would allow the district to exceed state-mandated revenue caps by $700,000 for the 2010-11 school year and by $800,0000 for the following years. The money was for operating expenses. A recurring referendum has no end date.

The school board hasn't met to decide its next course of action, whether it will go back to the voters with another referendum anytime in the near future or make deeper cuts, McNulty said.

The board meets Monday, but it's unlikely any decisions about another referendum would be made at the meeting, but the board might take up the matter at its May meeting, he said

The board could hold a special meeting to discuss the referendum vote and where the district goes from here, McNulty said.

"We're going to be cautious. We don't want voters to think we aren't listening to them," he said.

In January, the board talked about the possibility of a $1.6 million non-recurring referendum in June if the April referendum failed.

McNulty said the board hasn't indicated if it plans to hold a second referendum.

"We're watching Brodhead," he said. "They had a second referendum and it failed."

The district has a fund balance of about $1.1 million that could be used to cover the expected $800,000 deficit next year, which is due to a decline in state aid, McNulty said.

"That's why you have a fund balance," he said.